Hurricane Season Prep: Does Your Business Insurance Cover Storm Damage?

Living and working in Florida means hurricane season is part of life. For business owners, a major storm can mean thousands—or millions—in lost revenue, property damage, and recovery costs. So the question isn't if you need coverage, but what kind you actually have.

Let's break down what your business insurance covers when a hurricane hits, what it doesn't, and how to make sure you're protected before the next storm rolls in.

What Commercial Property Insurance Covers During a Hurricane

Most commercial property insurance policies cover wind damage from hurricanes. This includes:

Roof damage from high winds
Broken windows and doors
Structural damage to the building
Damage to inventory, equipment, and fixtures inside the building caused by wind

Important: Wind coverage typically requires that the wind physically damages the building first, then causes interior damage. If rain blows through an open door or window that wasn't broken by the storm, you might not be covered.

What's NOT Covered: Flood Damage

Here's where business owners get surprised: Standard commercial property insurance does NOT cover flood damage.

Flood coverage requires a separate policy, typically through the National Flood Insurance Program (NFIP) or a private flood carrier.

What's considered flood damage:

Water that enters the building from ground level (storm surge, rising water, heavy rain runoff)
Damage caused by standing water
Mold and mildew resulting from flooding

Real-world scenario: A hurricane blows your roof off (covered by wind policy), then rain pours in and floods your office (covered). But if storm surge floods your warehouse from the street, and there's no wind damage to the building, you're only covered if you have a separate flood policy.

In Florida, especially in coastal areas, flood insurance is essential. Don't assume you don't need it just because you're not in a FEMA flood zone. Hurricanes bring unpredictable storm surge and rainfall.

Business Interruption Coverage: Protecting Your Income

Even if your building survives a hurricane intact, you might lose weeks or months of revenue due to:

Power outages
Evacuations
Supply chain disruptions
Customers unable to reach your business

Business interruption (BI) coverage reimburses you for lost income and ongoing expenses (rent, payroll, utilities) while your business is shut down due to a covered loss.

Most BI policies require direct physical damage to your property before coverage kicks in. So if the hurricane damages your roof and you have to close for repairs, you're covered. But if you close voluntarily due to an evacuation order, and your building is fine, you're likely not covered.

Extra expense coverage can help pay for temporary relocation costs—like renting a new space or setting up a mobile operation—while repairs happen.

Hurricane Deductibles: The Fine Print That Costs You

Florida insurers use hurricane deductibles, which are much higher than your normal policy deductible.

How they work:

Regular deductible: $1,000 or $2,500
Hurricane deductible: 2%, 5%, or even 10% of your building's insured value

Example: Your building is insured for $500,000 with a 5% hurricane deductible. If a hurricane causes $100,000 in damage, you pay the first $25,000 out of pocket.

Hurricane deductibles typically apply when the National Weather Service declares a hurricane warning or names a storm. Some policies use a different trigger, so read your policy carefully.

Pro tip: If your hurricane deductible is uncomfortably high, talk to your agent about lowering it. Yes, your premium will go up, but it might be worth it if a storm hits.

Wind vs. Flood: How Adjusters Decide What Caused the Damage

After a hurricane, insurance adjusters often debate whether damage was caused by wind (covered) or flood (not covered by your property policy).

What adjusters look for:

Water lines: If water entered from the ground up, it's likely flood damage
Debris patterns: Wind-blown debris suggests wind damage
Roof and window damage: If the building envelope was breached, interior water damage is usually covered under wind
Timestamps: Did the damage happen during peak winds or peak storm surge?

This is why documentation matters. Before a storm, take photos and videos of your property. After a storm, document everything—roof damage, water intrusion points, inventory loss. The more evidence you have, the better your claim outcome.

How to File a Hurricane Claim Fast

Time matters. Here's what to do immediately after a hurricane:

1. Ensure safety first: Don't enter a damaged building until it's safe.

2. Notify your insurance carrier immediately: Most policies require you to report claims within a certain timeframe (often 72 hours). Call your agent or the carrier's 24/7 claims line.

3. Document everything: Photos, videos, receipts for damaged equipment and inventory. The more detail, the better.

4. Mitigate further damage: You're required to prevent additional damage (like tarping a damaged roof). Save receipts—mitigation costs are often reimbursable.

5. Don't make permanent repairs yet: Wait for the adjuster to inspect before you start major repairs. Emergency repairs are fine, but replacing your entire roof without approval can complicate your claim.

6. Keep records of all expenses: If you have to rent temporary space, pay for cleanup crews, or lose inventory, document it. This matters for your BI claim.

Pre-Hurricane Checklist for Business Owners

Don't wait until a storm is 48 hours out. Prepare now:

Review your insurance policies: Know your coverage limits, deductibles, and exclusions
Update your property inventory: Document all equipment, inventory, and fixtures with photos and receipts
Install storm shutters or impact windows: Some carriers offer discounts for wind mitigation
Create a business continuity plan: How will you operate if your building is offline for 30 days?
Review your flood risk: Even if you're not in a flood zone, consider flood insurance. Premiums are cheaper than you think.
Talk to your agent: We'll review your coverage and make sure there are no gaps

Get a Free Coverage Review

Hurricane season runs from June 1 to November 30, but storms can form outside that window. Now's the time to review your coverage and make sure you're protected.

At Greene & Associates, we help Florida business owners understand their property and liability coverage. We work with over 24 carriers and can find the right policy for your business—whether you're a restaurant, retail store, or contractor.

Ready for a coverage review? Contact us today or call 1-800-252-6885.

Don't wait until the storm is named. Get covered now, and get peace of mind.